Income Tax Basic Exemption Limit in India-some facts to know | ITR Guide


 Income tax basic exemption limit in India-some facts to know

What is income tax basic exemption limit in India?


As per the Budget provisions, there is no tax liability upto a certain amount of income. Therefore, income tax basic exemption limit is the maximum amount of taxable income for which no need to pay any tax. In other words, you should not pay any tax if your income is lower than the said limit.

The basic exemption limit for AY 2019-20


The basic exemption limit is rupees 250000 for AY 2019-20 for individuals below 60 years. For instance, you do not need to pay any tax if your taxable income is below rupees 250000. In addition, you do not even need to file your income tax return if your gross income is less than the basic exemption limit. So you have to be clear about your gross income and your taxable income.

What is a Gross income and how is it different from Taxable income?


Gross income is the total income from salary/ wages/ pension, from savings, from house property etc. before any kind of deductions. Taxable income is the income after the deductions for savings and some other expenses from gross income. Tax is to be calculated on taxable income.

Income tax basic exemption limit for AY 2019-20 for the senior citizens


However, the income tax basic exemption limit varies in different age groups. The limit is rupees 300000 for senior citizens aged below 80 years but more than 60 years. Where as, the maximum amount of exemption for AY 2019-20 is rupees 500000 for individuals above 80 years.

Final words regarding income tax exemption limit:


Hence, it is not necessary to file an income tax return if your gross income is not more than your basic exemption limit. But, income tax return filing before the due date is compulsory if your income exceeds such exemption level.

Note: You can file your return even in case of nil tax. To claim a refund you have to submit your return before the due date irrespective of your income level.

Step by step guide on how to file your income tax return online.

Hope you have understood what the basic exemption limit is. Besides, you have also come to know the differences between Gross income and Taxable income. Finally, if you like the post, share this to others. Thanks for reading.


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